LCFE set to list Kian Smith’s N21b gold bars

The Lagos Commodities and Futures Exchange (LCFE) has concluded arrangements to list over N21 billion worth of Kian Smith FZE gold in a transaction aimed expanding investable asset classes within the capital market.

The listing will feature internationally certified 1kg London Bullion Market Association (LBMA) gold bars, which expectedly would deepen Nigeria’s commodities market.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, and Managing Director, Kian Smith FZE, Nere Emiko, confirmed that the Exchange had received approval from the Securities and Exchange Commission (SEC) to list Kian Smith’s 1kg, LBMA-certified gold bars on its trading floor.

Akeredolu-Ale said the impending listing highlights increasing confidence in structured commodities trading and marks a major milestone in attracting institutional capital.

He noted that trading on the Exchange would improve market transparency while positioning gold as a credible alternative investment for both local and international investors.

According to him, Kian Smith listing is expected to elevate the Nigerian capital market, in alignment with the broader vision of building a $1 trillion economy.

He commended Kian Smith for the notable contributions to the gold sector, highlighting that Kian Smith FZE, is advancing its efforts further through the LCFE listing.

He noted that, with PENCOM’s newly introduced investment guidelines, the timing of the 1kg LBMA gold bars listing is especially timely.

Akeredolu-Ale noted that the transaction required significant effort and commitment, commending SEC for the strong support extended to the Exchange.

He explained that the EKO Gold transaction, the first listing on the Exchange, highlighted the vast opportunities within the gold sector through commodities trading.

Emiko explained that the initial offering is intended to gauge the Nigerian capital market’s response to structured gold trading, with additional tranches of gold contracts expected to be listed on LCFE in the future.

She further highlighted the strong growth trajectory of the gold sector over time.

She noted that in 2000 and early 2024, an ounce of gold traded at $1,800 and $3,200 respectively, and it currently trades at $4, 450.

Advertisement

Emiko said that forecast for 2026 project gold prices could reach $5,000-$6,000 per ounce, underscoring the sector’s significant potential.

Managing Director, First City Monument Bank Limited (FCMB), Yemisi Edun, said that the transaction represented a significant milestone in the evolution of the Nigerian capital market.

She emphasised that the collaboration between Kian Smith’s supply chain expertise, LCFE’s trading platform, and FCMB as the receiving bank establishes a model for the future of commodities trading.

Managing Director, WCM, Patrick Ajayi, the dealing member firm facilitating Kian Smith’s market entry, underlined the significance of investors understanding the robust risk management protocols that the instrument underwent prior to being listed on the Exchange.

He further explained that each gold bar is sealed, with its quality and quantity guaranteed, providing investors with confidence that all necessary safeguards and protocols have been thoroughly implemented.